video of the day went to Jeffrey Christian. The CPM Group Founder who told CNBS that gold and silver have probably seen their peak for 2012 this week.
MSNBS must have took notes, trying to top Christian releasing today an article from Forbes, "China goes on Gold Binge, as World Wonders Why. No easy answer why the fifth largest holder of metal has increased purchases."
Article highlights and reasoning,
"the purchase of gold would be especially risky for the central bank,
which is already insolvent from a balance sheet point of view. The PBOC needs income-producing assets in order to meet its obligations
on the debt incurred to buy foreign exchange, so the holding of gold
only complicates its funding operations. "
"there is not much demand from the country’s institutional investors for gold."
"The easy answer is that the demand is only seasonal, as Jeff Wright of
Global Hunter Securities believes. The Chinese traditionally buy gold
presents in the run-up to the Lunar New Year, which started a week ago."
Except there is one big problem among many with the conclusion, THE SURGE IN GOLD PURCHASES STARTED LAST JULY.